-- social relies on taking this aggregated view of the world and you have a much more measured message that comes from a consumer or sporting this company. someone from our industry versus some money from tech. >> would you call under armour a sporting goods company at this point? >> i would like to change that image. -- under armour trend to position itself as a technology. i don't think our industry has attracted a of the world's smartest people. i was a driving -- michael is not attracting more into the industry. how can i get the smart ones? four years ago, i went to the ces show and i was blown away in las vegas. a massive show. i'm walking the show floor and

--s big idea this year was they have gone from a flat-panel and a hyperrflat superflat. 2.5 inches. i'm walking around the show and here is sony and lg and samsung. brand after brand after brand. i'm going, samsung probably has and sony haseers 200,000 engineers. there's more than one million engineers that were all committed to working on this one big idea. think of all that wasted horsepower. engineer 100,000 turned to solve that problem, -- if inext 900,000

can take 1000 of them and put them on a bus and drive them to the closed dick's sporting goods grab allenge them to sporting good product and innovating it, one would grab a fishing rod and another would grab a football helmet. that thinking was not driving through our industry. technology was not in sporting good. it was the color or silhouette. what if we could apply that type concerned? -- in my when i hear companies like apple and samsung say things when the consumer where's our product -- if it's wearing, it's us. i'll be darned if we are going to concede anything to silicon valley. >> does kevin plank say i'll be darned?

how are you going to build this technology empire in baltimore? can you? >> home is where the heart is. our home is baltimore, maryland. in an incredibly unique moment in time. november 17, we celebrate our ninth year as a public company. topline.veraged a 30% you imagine coming if we averaged a 21% growth for the , by 2020, $10 billion grant. we are sitting here in this unique moment in time saying we have the opportunity to get to $10 billion. can you grow that much more in a town as small as baltimore?

>> baltimore is an amazing city. -- it in part of the the next six years, we can triple in size, let's have a $7 million company in baltimore. that's an extreme area opportunity to look at it and say how can we do the right andg for our customers consumers and employees and shareholders and our community? i see the growth and impact of under armour being able to leave a mark on our city. cities don't need companies, but companies can help them. the branding of under armour can make a big difference with baltimore. it's an incredible city. it's 30 miles from washington. the next great tool to be discovered. >> home is where the heart is and your heart is in baltimore. have the ravens broken yours?

season? record this >> i'm talking about ray rice. >> sports is an amazing platform that forces the issues of the world to come to the forefront. nfl problem.n this is a domestic abuse problem that affects all of us. using the platform as the nfl, i think you will find the world will be better for having gone through this process. it was an awful thing watching that video. maybe we assumed what happened but when we saw the video everything changed. testg ignores a select nfl having an organization like the nfl be on top of it -- have they

don't with it appropriately? i am pleased with the direction the nfl has taken. >> another maryland hero, kevin durant. you helped him make a lot more money this year. what was your ultimate goal? could you believe he made it that far? >> winning is a culture. anything -- if you are going to stay in, you better be prepare to drop your cards. there is no such thing as a bluff that exists in that way. athletehe is an amazing and a better person. being someone from my state, i encourage him to take the $350 million he made from his current supplier and bring it back to our state. under armour, there is not a deal that is too large for our company.

i was telling every athletic around the world if you have a deal, you should be calling us and having us sit at the table and let us bid. durant --thout kevin we have a great guide stephen curry.- guy in stephen seems -- hasho 'vere been an endeavor you been involved in that said we should pull back? you go full force. >> i think we are probably pretty aggressive company. it can be an exhausting pace. 18 consecutive quarters of play growth --owth -- 20% >> how will you keep that pays up?

up?hat pace >> when we got into the marketplace, it was not looking for a new brand. the consumer did not need another brand. we said, let's make our own pie. i'm incredibly proud of what we have done to drive this industry. no one ever looked at it and said we should have a better alternative to wearing a three pound cotton t-shirt around your body when you play sports. games are inches and seconds. no one had adjusted. it took a football player from university of maryland. the simplicity and what i brought to it -- i mean that humbly it's a message for people out there.

entrepreneurship can come from anywhere. i'm proud of that. you can build a great company. >> why don't you have a mentor? do you need one? >> that is a personal question. >> that is the point. >> my father passed away when i was 19 years old. a lot of people have that -- entrepreneurs are always looking for validation. am i on the right track or doing the right thing? will my idea sell? i remember those days. i have this stretchy t-shirt thing. i member people telling me it will never work. who are you to tell me that? >> really? >> so often, people are looking to visit the oracle.

tell me one thing i can do about my business. >> what is your answer? >> it's easier than going don't do that. i have met the best entrepreneurs in the world. people are just human. it's up to the entrepreneurial in the innovator in the themselves to decide i'm going to make a difference until my company. -- and build my company. is there an out of print or a business leader you are jealous of? entrepreneurn business leader you are jealous of? >> i don't think they are celebrated anywhere near enough. we sit here in washington where if the president of the united , when something happens to the president of united states, the flag is flown at half mast and we shut down d.c.

it's our country. if that president did not have the job, someone else would have had the job. innovation -- when steve jobs passed away, it was a private funeral in cupertino and that was it. us wouldim, none of have had that great piece of technology. how do we do a better job of telling that story? are we prioritizing politics or entrepreneurship? >> you don't like to tell your story. entrepreneurs are now all over social media. you can't find kevin plank on instagram or twitter or facebook. why don't you want to connect with people? my company is public enough. the world sees plenty of me. my alone time and

my family time. if i have something to say, i have platforms to do it. i would rather come here and sit down and think about it and have a brilliant reporter asked me these questions. there's probably too much talk. if someone has a comment about under armour, you can go to google and you can have a wall writeup on under armour and the next moment you can have a job sitting in tulsa in his grandmother's basement writing this expose on our company that has no factor basis to it. we may be a bit overexposed at this point. >> it's clearly an important part of your business. >> don't get me wrong. we listen. we listen to consumers. empathy is a massive word that's

happening right now. you talk about being empathetic to the consumer. social is a great way to have a better understanding. i was an athlete. i was our consumer. , i'm further away from that 18-year-old we are trying to sell to. >> don't you have to tell the consumers what they need? do they really know? >> the best merchants in the world are those where dictating what's cool. worldst merchants in the are the ones who are dictating what's cool versus predicting what school. -- versus predicting what is cool. it's easier when you are the ones saying that is cool. that comes across with point of view. having a strong point of view. the difference between what you want to do tonight versus i will

pick you up at 7:00 and i will take you to the movie and we -- i will haveff you home by midnight. done. theine that date versus what do you want to do. and conviction in your point of view. like the bad way word politician. great brands have strong points of view and it comes across in our product and be consistent in our branding and the athletes we sign and the way we present ourselves. that is the difference of what makes a brand -- where do we go? i don't concern myself with our competition because it's not -- our opportunity is controlled by us at this point. >> did you have that moment this

year when there wasn't a moment or a new launch? i will sign a supermodel and ballet dancer. that youtube video got more clicks than anything under armour has ever done. >> absolutely. let me tie this into a better example. we don't have the big marketing budget our competition does. we have three holidays every year. daysn three massive solid -- massive holidays. summer, back-to-school, july, underll season, big armour campaign. we built it around a ballerina. it's a gutsy call but that demonstrates the conviction.

we have to stay authentic depaul sports and football -- to fall sports and football. i think what came across is and her armor is being brand versus -- whaty that makes comes across is this beautiful woman who faced all kinds of odds and adversity and is an absolute athlete. -- put thetion players were inspired by the commercial. around branding and conviction, jack ma? is this guy invented a day and made it the largest retail day in the world. i look at that guy and say he's pretty smart. i have met him. understand you have all these commitments.

what is your commitment to making sports safer? >> we just launched a partnership last year with the nfl and u.s. army. we just announced our first wave bringing these ideas of making athletics safer. football is in the bull's-eye of this conversation right now. what can we do to reduce head trauma and measure it and identify it and make sure kids ing -- with a partner like ge who is no better -- our ownng mris innovation team and what we are doing and how we are driving a renovation team of roughly 70 working on this health initiative with the nfl. let's leverage the populace.

idea ishas the best going to win. we just passed out $500,000 last week to that cause. >> kevin plank, thank you so much. [applause] ruhle with the ceo atunder armour, kevin plank the 2015 year ahead conference in washington, d.c. good afternoon. i'm mark crumpton. some of the highlights we take away from that. mr. plank talked about 18 consecutive quarters of 20% growth. a hectic paces but he is proud of how under armour helped drive the industry. he did have questions when he was younger, namely will it sell or will it work. of those who questioned him, he

said it is up to the entrepreneur to chart his own course. the takeaway statement was the best merchants in the world are the ones where dictating what is cool as opposed to predicting what is cool. kevin plank interviewed by stephanie ruhle. more from the year ahead 2015 conference in washington. still ahead, we will hear from and thenew york's ceo former citigroup ceo and former new york city police commissioner. now.om line" starts 12 years here in the united states and those of you joining us around the world, welcome. to our viewers here in the united states and those of you joining us from around the world, welcome.

myanmart obama has left to attend the g-20 summit. the president is inspected to announce the west will contribute $3 billion for the united nations climate change fund. the fund is intended to help less-developed countries reduce carbon emissions. the president met with myanmar's opposition leader an issue of support. -- in a show of support. >> on behalf of the people of burma, i know you will be a strong partner of the united states. >> the republican-controlled house of representatives has passed a bill approving the controversial keystone pipeline. the senate is expected to vote on the measure on november 18. both republicans and senate democrats will give an edge to their party's candidate in the louisiana senate race where bill nd mary landrieu

are headed for a runoff. adam silver has broken new ground in an op ed in the new york times, saying he is supporting legalized sports gambling. sports betting should be brought out of the underground. the u.s. congress should adopt a framework for individual states to allow betting on sports. sports betting is illegal in all but four states. when we return, we will take a look at how the markets are doing. ♪

>> welcome back. i'm mark crumpton. -- we areinding you looking at the year ahead conference underway in washington, d c with a panel of guests. stephanie ruhle interviewing kevin plank of under armour. talking about a variety of things from how he started the company would he was younger to his days as a football player at

the university of maryland and how that helped shape his business acumen over the years. it's up to people, the aunt of the norse and those who want to be business leaders in the future to chart their own course and not wait for others to dictate what should be done. you can see the highlights of that on bloomberg.com. it is 26 minutes past the art. bloomberg television is on the markets. we have 1.5 hours to go before the close. with a flat session. these benchmark indices are trading near all-time highs. shares are the biggest boosters in the s&p. shares plunging by the most in 14 years, trading at a new 52-week low. ir profithere fo forecasts.

shares -- we will be on the market again in 30. ♪

>> welcome back to the second half half hour of "bottom line" on bloomberg television. i am mark crumpton. thanks to staying with us. mark makers eric is in washington, d.c. he sat down with visa's head of risk and public policy, ellen richie. he asked how she works to combat the most serious cyberthreats to the u.s. payment system. >> the main threats we are looking at from a cyber perspective are threats to the stakeholders. we spend a lot of time trying to helm them secure their systems and invent and capitalize on new technologies

that can make it more secure. >> that is an important point. what kinds of tools are available to you, to the banks, possibly even for the merchants themselves, but probably much less of that today that are helping gain the upper hand on cybercrime. >> we have a great new system. we have a payment task force. a lot of the major merchants are involved in this task force. we have all agreed on a road map to improve security. hree elements, chip cards, tokenization, a new technology to secure payments, and data encription. >> aren't you also trying to figure out what the criminals are doing using things like artificial sbem janssen and machine learning? >> absolutely. >> fraud prevention is interesting. the great things i just talked ization, ip and token

it makes the data worthless. but you are right, we have a fantastic technology we have been using for many years. we are in fraud control, so we look at tons of information, 500 data elements in less and millisecond, and that also presents fraud. >> you talked about chip and pin technology. there is an important date on the horizon in october of 2015 for credit card payments in general. how important is that date? more and more i hear it is not going to be this seamless switch over that some people expect? >> it is just a liability shift. it is not a mandate. what happens there is within our system, and our competitors adopted the same date, anybody that doesn't have the chip technology would bear the loss, so merchants and banks can look at their risk profile and

decide is it worth it toe run hard to meet that date and have ig in place to avoid taking the liability, or they can wait and deploy it more slowly. >> canada started migrated towards chip and pin in 2003, and it deck a decade to make that transition. is it going to take that long in america? >> i doubt it. we are the last major market, so we have a much greater incentive to move quickly, because otherwise the fraud migrates here. secondly, we have the experience of all the other countries to draw upon. it won't all be in place by 2015, but we have a projection that there will be 575 million chip carts by october 15. that is a lot, more than half of the market, and more than half of the market with terminals as well. >> those are people with chip and pin cards. you really believe that more than half the market will have

compliant terminals? >> close to half. we have a projection from the industry, not just from us, not just our idea, after doing a survey of the industries. in the high 40's, yes, i do. >> how is it possible that america became the last major market to adopt more secure payment technology at the point of sale? >> that is interesting. because of the technology you just described or asked me about where we are able to prevent fraud so effectively using big data solutions, real time fraud prevention, we have been able to keep the rate low, at less than six basis points for the last decade in spite of the rise in data breaches. >> that is fraud. but without magee stripe, we wouldn't have had the data breaches at target and home depot? >> at target and home depot, and you may have had them

somewhere. in the internet environment. >> but if you have chip and pin technology, and we don't have to get into a debate, but safe to say if more safe technology had been adopted earlier, certain things we have seen happen wouldn't have happened. >> and other things would have happened. >> like what? >> well, what happened in europe. fraud will migrate from the face to face environment to the internet environment. what has happened is the u.s. consumer is very impatient with anything that gets between them and the completion of their trance appings. -- transaction. security solutions are acceptable. e grantham thing about tokenization is in the background. we have something that is going to reduce the fraud rate, unlike what happened in europe. >> ellen richie, she is visa head of policy.

more ahead from the bloomberg conference in washington, d.c. jeremy hassell will discuss the impact of regulation on the financial industry. we will be right back. ♪

>> i am mark crumpton in new york. it is time for today's latin america report. shares of brazil's petrobras tumbled after they delayed release of earnings for the month. the company is in the midst of a corruption scandal that led to the arrest of a second former executive on friday. they expect to release unaudited results on december 12. venezuela lost 30% of its

fournette change ref issue in the last month. the president said the loss was due to a tremendous drop in oil prices. that is your latin america report for this friday. coming up, gross bonus. we will look at bill gross' big pay day despite his fund's lackluster year. "bottom line" continues in a motor. ♪

>> welcome back. pimco's total return fund didn't dough very well in 2013. with bill gross at the helm it trade 65% of its pierce. but documents obtained by bloomberg shows gross still received a $290 million bonus. how does this stook up? >> you compare this to a larry finke of blackrock, and he made about $23 million in 2013. you would think they would be in the same realm, but they are

miles apart. >> was this something owed to him regardless of how it performed? >> it did sount as though there -- sound as of though there was some sort of preexisting agreement. it did represent about 20% of the overall m.d. bonus pool, and 30% total. they distribute this $1.5 billion pool of the revenue that they retain among the 60 managing directors. that is how they divvy it up. as gross' riches grow, the managing director's may get less. >> how did it do in 2013? >> it was lagging pierce this. is when the fed started that taper tantrum talk. bill gross was importantly positioned for that move. it beat only 35% of pierce and just barely beating out the

aggregate index. >> was this what people were expecting? >> it is really an interesting question. people in the financial world say so what, we have been hear this number for years. outside people are shocked. up to utside it stacks others. there are only a handful of guys who are managing to beat this, and they are often at private equity funds, and that is a different paradigm entirely. >> you speak about pimco's new group chief investment officer. how much was his bonus? >> $70 million. and people are saying that guy is grossly underpaid. i am sure they have ameliorated that situation. >> but these bonuses at pimco, they do rival the compensation in other places? >> i think they outpace other

places to a fairly significant extent. i don't know the extent, but the average portfolio manager in fixed incomes, including edge funds, that was about $360,000 in 2013 according to a survey. that is a very big difference. >> bloomberg's mary childs. thank you. >> thank you. >> this afternoon, the conference turned its focus to banking industry. peter cook moderated that discussion. he is standing by with gerald hassell, the c.e.o. and chairman of bank of melon. gerald oined by hassell, head of bank of new york melon. we had a healthy discussion about the state of the banking industry, but repeat for our viewers what your sense is right now, not just for your bank but the industry as a hole? >> sure, pete.

thanks for having me. generally i feel like the banking industry in the u.s. is very healthy, very stable, recovered enormously. a tremendous amount of capital has been raised and injected. liquidity is strong. i would say the health of the financial industry in the u.s. is very strong and very dominant, very active in terms of working in the marketplace. >> as we heard in that discussion, all is not perfect in the banking world. there are questions you have raised and others about the regulatory pendulum swinging too far back, and others are still critical of the banks for what happened in the financial crisis. walk me through what needs to happen here in washington to make banks like yours run more effectively. >> we believe as a cisco coming out after financial crisis, regulatory reform was required. many people were negatively effected and reform was

required. we have seen an effort in the last five or six years for solving individual problems, and we are not really looking at the end to end solution and the impact on the economy and financial institutions themselves. many institutions are changing their business models to immediate the new regulatory requirements. many broke ergs are shrinking their balance sheets, not providing the liquidity they once did. you are seeing some of the traditional non-investment great lending moving outside the banking industry into the shadow bank can't area. so you are seeing a lot of change going on simultaneously in the marketplace today. the word we have offered to the industry or i have offered to the congressmen and regulators, why don't we take a bit of a pause? let's see the regulation that we have now adopted, see what the final impact is on an end to end basis. it is hard to empirically identity, but there is no question in my mind that the economy has been negatively

impacted. >> do you see the change in control in congress as offering that opportunity for pause? > i am always optimistic about a change in congress with trying to bring the parties together for the issues facing this community. the information one issue in my minds is economic growth. we have had two parties at two opposite ends of the speck truck. we have had a very disharmonious congress. and if people can get in a room and solve some of our approximate, we have a great chance as a country to grow quite strongly into the future. >> you used the number in the panel discussion, $28.3 trillion under management or administration. that is a huge figure, making you a giant bank. >> yes, we are. >> if you could make one regulatory change that you think makes sense for your

country and back, what would it be? >> that is a tough one. >> the list is longer? longer than just one. in our case, given our company, the thing that has been most impactful that i would not have guessed two years ago is a very technical term called the supplemental leverage ratio, which is simply your equity over your assets. irrespective of the quality or risk of your assets. we are an extremely liquid and conservative institution. our assets are mostly cash and deposits that we invest in shortstop-term securities or with the federal reserve. we now have to hold cash against the federal reserve. >> let me ask you this. the fed, everyone is talking about interest rates finally raising. for your business that would be a good thing? >> yes, huge positive impact. >> is it long over due? >> it is long over-due. i think we are way too long

into a low interest rate environment. hurts the sabers of our country. there are more earnings, more margin to work with. that means more investment in our future. >> you have a couple. activist investors who have jumped on board and taking stakes. what is going to change going forward? >> i think they are into our stock because they like our company and business model. they would love to see better financial performance like i would. we are mutually aligned in that respect. >> what about the prospect for getting some directorships? >> we are always looking to refresh our boards. we added two new board members this year. that is part of the on going process with our board. >> what is going to happen to the economy this year? do you see the u.s. economy growing? >> i do see the economy growing. as i said in a panel earlier, i am very bullish on america. if we can get some of these

things put aside, some of the regulatory issues more clear, the chances of our economy growing faster and better. >> gerald hassell, president and c.e.o. of the new york bank of melon. bank back to you in new york. >> peter cook a proud graduate of duke as well. stay with us. another check of the market movers is on the other side of the break. "bottom line" on television twippings continues in a moment. ♪

>> get the latest headlines at the top of the hour on bloomberg radio, on your tablet. that does it for this edition of navorro bowman on bloomberg television. i am mark crumpton reporting from new york. thank you for joining us. ♪

>> 12:56 past the area. i am mia saini. let's get you caught up as we close out this trading week. the s&p 500 and the dow in the red. they were fluctuating earlier but as we look to close out this week, they are firmly in the red. this is despite retail sales increase in october as american consumers decided to go out and shop as we hit the holiday season. time now for etf fridays. i know you are all very excited. i am. very few e.t.f.'s have been riddled with this poor performance for multiple years. not just one or two, but multiple years. usually held down by something bigger than the normal market movement. joining me on whether there is hope is erik. you are our e.f.f. expert, but we can't get a karl ravech. >> they can't catch a break.

we talk about the winners, but sometimes if the loser gets the right catalyst, look out. they can jump up a lot. ne example is the global-x uranium e.f.f. this trackings uranium miners in canada and australia. it has been held by that terrible disaster in japan in march of 2011. what you saw recently is japan has announced they are going to fire up some of these nuclear reactors again. you have seen a 19% surge this month in this e.t.f. keep in mind, it is down 77%. >> looking at the terminal, it is up 5.3% today. but your point is over the five-year period, it is a downward play? >> that is the point. when you look at these long poor performers, they pop big. >> one is vectors russia. we know the problems from a political and social point of

view, but from a stock play what is going on? >> what is holding it bake is putin. looking at russia, r.s.q. is a ticker. this is down 15, whereas the emerging markets broad index is up 10 pess. every time it gets started, something happens like invading ukraine. what is going on here, though, it is cheap. the price to earnings ratio is up to eight. >> is that why investors should hold on to it? >> that is why investors would go into it. if you look at the flows, $1.2 billion has gone into r.s.x. this year, which is astonishing. the price is going down, but flows are coming in, and those are hedge funds and institutions trying to call a bottom on this. these evaluations are half of what they are in japan, which is considered cheap already.

you are looking a lot totally bargain basement prices in russia. >> for investors who care, rare earth strategic metals. three losers are better than two. >> something you haven't heard of since anaheim line sirium and titanium. they are used for things like smartphones, cruise missiles. this market could open up if there are more miners popping up outside of china. >> we should put up the periodic table of elements. thank you. "street smart" is up next. ♪

>> welcome, everyone to the most important hour of the session. we have 60 minutes to the de la rosa. i am trish regan. knee thoughts about the pimco c.e.o. victor joins us. what he has planned for the next year. how low is oil really going to go? i am going to talk to a leader analyst to see how opec may respond. "street smart" starts now. [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org ♪ >>re